How Much Is the Minimum Wage in the UK? A Guide to Take-Home Pay in 2026/27

Understanding the Minimum Wage in the UK

If you’re wondering how much is the minimum wage in the uk, the answer depends on your age and whether you are an apprentice. The government sets these rates each year, and they apply to almost all workers. For 2026/27, the key rates are:

• National Living Wage (21 and over): £12.71 per hour
• 18–20 year old rate: £10.85 per hour
• Under 18 rate: £8.00 per hour
• Apprentice rate: £8.00 per hour (for apprentices under 19 or in their first year)

These figures come from official GOV.UK National Living Wage rates and are effective from 1 April 2026.

Gross Salary vs Take-Home Pay

Knowing the hourly rate is only part of the picture. Your take-home pay (net pay) is what you actually receive after deductions. The main deductions are:

• Income Tax – based on your taxable earnings above the Personal Allowance.
• National Insurance – Class 1 employee contributions.
• Pension contributions – if you opt into a workplace pension.
• Student loan repayments – if you have an outstanding loan.

For a single person aged 21+ working 37.5 hours per week at the National Living Wage:

• Gross annual salary: 37.5 hrs × £12.71 × 52 weeks = £24,785 (approx.)
• Personal Allowance: £12,570 (tax-free)
• Taxable income: £24,785 – £12,570 = £12,215
• Income Tax (20%): £2,443 per year
• National Insurance (8% on earnings between £242 and £967 per week): approx. £1,250 per year
• Estimated monthly take-home: around £1,780

Use our take-home calculator to get a personalised estimate.

How Income Tax Works

For England, Wales, and Northern Ireland, the Income Tax bands for 2026/27 are:

• Personal Allowance: £12,570 – 0%
• Basic rate: £12,571 to £50,270 – 20%
• Higher rate: £50,271 to £125,140 – 40%
• Additional rate: over £125,140 – 45%

If you live in Scotland, the bands are different (see below).

National Insurance Contributions

Employee National Insurance (Class 1) is calculated weekly. For 2026/27:

• Primary threshold: £242 per week (no NI on earnings up to this)
• Main rate (8%): on earnings between £242 and £967 per week
• Additional rate (2%): on earnings above £967 per week

For a minimum wage worker earning around £476 per week (37.5 hrs × £12.71), NI is about £18.70 per week, or £972 per year.

Student Loan Repayments

If you have a student loan, repayments are taken from your pay once you earn above the threshold. For 2026/27:

• Plan 1: £26,900 per year – 9% of earnings above that
• Plan 2: £29,385 per year – 9%
• Plan 4: £33,795 per year – 9%
• Plan 5: £25,000 per year – 9%
• Postgraduate Loan: £21,000 per year – 6%

Most minimum wage workers earning £24,785 would not repay a Plan 1 or Plan 2 loan, but would start repaying a Plan 5 loan (threshold £25,000) if their earnings exceed that. Check your loan type on your student loan company statement.

Scotland’s Different Tax Bands

Scotland sets its own Income Tax rates. For 2026/27:

• Starter rate: 19% on £12,571 to £16,956
• Basic rate: 20% on £16,957 to £31,092
• Intermediate rate: 21% on £31,093 to £62,430
• Higher rate: 42% on £62,431 to £125,140
• Advanced rate: 45% on £125,141 to £125,140 (note: this band overlaps; official bands are cumulative)
• Top rate: 48% above £125,140

For a minimum wage worker in Scotland, the first £3,967 above the Personal Allowance is taxed at 19%, then 20% up to £16,956. This can result in slightly lower take-home pay compared to England for some earners.

Why Take-Home Pay Varies

Your actual take-home pay depends on:

• Hours worked – part-time workers earn less and may pay less tax.
• Age – younger workers have lower minimum wage rates.
• Pension contributions – if you opt into a workplace pension, your take-home pay reduces but you gain employer contributions.
• Tax code – if you have a different tax code (e.g., due to benefits in kind), your tax may differ.
• Student loan – only deducted if you earn above the threshold.

Always check your payslip and use official calculators. For more details, see our salary articles and salary data.

Summary

So, how much is the minimum wage in the uk? For 2026/27, the National Living Wage is £12.71 per hour for workers aged 21 and over. A full-time worker on this rate earns about £24,785 gross per year, with take-home pay of roughly £1,780 per month after tax and NI. Remember that Scottish residents face different tax bands, and deductions like student loans or pensions will affect your net income. For a personalised calculation, try our take-home calculator.

Frequently Asked Questions

What is the minimum wage in the UK for 2026/27?

From April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour. For workers aged 18–20 it is £10.85 per hour, and for under 18s and apprentices it is £8.00 per hour. These rates are set by the government and apply across the UK.

How much take-home pay can I expect on the minimum wage?

If you are 21 or over and work 37.5 hours per week at £12.71 per hour, your gross annual salary is about £24,785. After Income Tax and National Insurance, a single person with no other deductions would take home roughly £1,780 per month. Actual take-home pay varies if you have a student loan, pension contributions, or live in Scotland.

Do Scottish workers pay different tax on the minimum wage?

Yes. Scotland has its own Income Tax bands. For 2026/27, the starter rate is 19% on the first £3,967 above the Personal Allowance, then 20% up to £16,956, 21% up to £31,092, 42% up to £62,430, 45% up to £125,140, and 48% above that. This means Scottish minimum wage workers may have slightly different take-home pay compared to those in England and Wales.